Material only applies to some of the Mesh
The rest of the body is part of a different material slot, the last one, in fact.



You can either:


Assign the material to both texture slots
Merge the texture slots to the same slot


To merge:


Go to edit mode
Go to the materials tab
Click the last material slot
Click the "Select" Button under the material slot listings
Click The first material slot (the one currently with the material)
Click "Select" again
Click "Assign"


To Assign:


Go to edit mode
Go to the materials tab
Click the last material slot
Click the color globe (Next to "+ New") 
Choose the material